Cloud-sourcing vs. Outsourcing
Upcoming SlideShare
Loading in...5
×
 

Cloud-sourcing vs. Outsourcing

on

  • 858 views

Traditional outsourcing lacks the flexibility and agility today’s organizations require to obtain data-driven business intelligence that provides a clear, comprehensive view of their operations. ...

Traditional outsourcing lacks the flexibility and agility today’s organizations require to obtain data-driven business intelligence that provides a clear, comprehensive view of their operations. Cloudsourcing is a newer, more nimble model that has emerged to fill the gap. This whitepaper, authored by industry-leading experts at OneSource Virtual, explores opportunities available through cloudsourcing and Software as a Service (SaaS).

Statistics

Views

Total Views
858
Views on SlideShare
858
Embed Views
0

Actions

Likes
0
Downloads
10
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Cloud-sourcing vs. Outsourcing Cloud-sourcing vs. Outsourcing Document Transcript

  • Why Cloud-Sourcing is Better than Outsourcing for HR and Finance A OneSource Virtual White Paper by Wesley Bryan
  • Once upon a time, traditional outsourcing provided solutions to real business problems faced byhuman resources and finance departments. When faced with need to supplement staff, provideexpertise or counter the impact of shrinking budgets, companies looked to outsource providers forhelp. In the modern era, however, this solution may fall short of its goal.The needs of modern businesses have fundamentally changed. To remain competitive, contempo-rary enterprises must be agile – poses the ability to respond to acquisitions, divestitures and downsiz-ing strategies more effectively. They also depend on -- business intelligence – to make evidence-based decisions. Leaders of HR and Finance organizations require real-time access to comprehen-sive information that provides a insight into their department’s operations.The old approach to outsourcing has simply not kept up with the rapidly evolving businesslandscape. The traditional model, for the most part, has matured out -- unable to deliver theflexibility, transparency and accelerated levels of efficiency companies now require just to stay inthe game.New business demands supported the foundation of a new way for companies to behave. Withrequirements for a more nimble approach, progressive businesses are turning from outsourcing tocloud-sourcing – a newer model that has emerged to fill in the gaps created by the old style.Cloud-sourcing enables companies to access complete solutions to run their businesses from thepublic cloud utilizing a safe and secure Software as a Service (SaaS) model. It is traditional outsourc-ing updated with today’s technology to provide customers with a unified, flexible view of theirinformation; a more cohesive platform and greater control.This paper explores the difference between the traditional outsourcing and cloud-sourcing deliveredthrough SaaS, and what users can expect from each option.Transitioning from the Traditional to a New ParadigmIn a traditional outsourcing model, the client company decides to off load a part or all of itstransactional functions to an outsourcing provider. The client uses one system; the outsourcer usesanother system to perform the same functions, like payroll.Managing data in two systems to satisfy a business process like payroll processing is difficult. Foroutsourcing to work, the files from the client’s system have to be transferred to and read by theprovider’s system. There’s a migration process where a transition team creates a point of integrationthat allows the two systems to “talk” to each other. Ultimately, the client sends files; the outsourcerreads and processes the files. The completed documentation is sent back to the client, and theprocess begins again.It’s like sending clothes to the dry cleaner. You drop them off, you don’t quite know what happenswhile the clothes are away, and you pick up the clothes, hoping that everything was done correctly.When business conditions and requirements change, and an outsourcing client company decidesto start processing payroll in-house, the company has to go through another lengthy migrationprocess just to get its own data back. Many times, it’s as painful moving off of an outsourcingcontract as it is migrating to it.
  • In contrast, a cloud-sourcing model combines cloud computing with outsourcing to keep everythingtransparent and consistent. In this model, both client company and cloud-sourcing partner use thesame software platform (in our case, Workday), delivered as Software as a Service. Both theWorkday software and each client company’s secure data are centrally hosted in a cloud, andaccessible by both internal company personnel and the cloud-sourcing partner.Because everyone is using a single software platform, there’s no need for lengthy migrations,integrations or configurations to get two different systems to talk to each other. The cloudsourcerprocesses transactions on the same software, in the same way, as the client company would.If business needs change, companies don’t need a full migration just to get their data back. A fewsecurity roles are changed – and the transition is done.The cloudsourcer is not just a service provider. The firm behaves like a partner and becomes anextension of the client’s in-house team. If an employee calls with a question regarding the benefitsor payroll results, the cloudsourcer is looking at the same screen, and can answer the questionquicker and more accurately. There’s one platform, whether the function is done within or outsideof the company, for a more streamlined operation, fewer errors and total visibility into the operation.Cloud-sourcing is the smarter, less cumbersome choice for the way companies operate today.Greater Visibility and ControlCloud-sourcing eliminates one of the biggest outsourcing fears – namely, loss of control. In thetraditional outsourcing model, when a company sends files to the outsourcer for processing, thosetransactions are not visible until after all the processing is completed. This “black hole” of processingprevents the client company from catching and correcting a mistake in progress. No one can seethe error until the transactions are done and files are returned. With cloud-sourcing, businesstransaction processing occurs in one system – there is no movement of data, no mystery, no “blackhole.” Both the cloudsourcer and the client can see all transactions as they occur and can validateresults immediately and simultaneously.For example, let’s say that Company X is running a payroll with its outsourcing provider. Companypersonnel send the file; the provider processes payroll. However, for some reason, one or twoemployees get processed under an incorrect cost center. Because the client company has novisibility into what’s happening on the outsourcer side, it can’t identify the error until after the payrollis processed. Once discovered, the provider has to correct the cost center issue retroactively,typically, for an additional transaction fee. Everything can be corrected but at additional costs dueto an inefficient model.In the cloud-sourcing model, transparency is introduced to the process. Because both client andcloudsourcer work on the same software, everything is visible to the client at every point of theprocess. Therefore, using our earlier example where one or two employees were slated to be paidunder an incorrect cost center, this issue would be visible before the payroll process is completed.The client company would see the discrepancy in a general ledger report, alert the provider andthe cost centers would be quickly corrected, eliminating the error before final processing occurs.Improvements in visibility and partnership introduced in the cloud-sourcing model improve perfor-mance and increase efficiency.
  • An additional benefit of cloud-sourcing is the ability to conduct real-time audits of processes. Clientscan see at a glance precisely who has logged in and touched the data; or run audit reports at anytime in the process. Business leaders always have real-time access to the data that’s beingmanaged on their behalf, any time they want it.In short, cloud-sourcing returns granular control of the environment to the client. Everything is out inthe open.One Solution, One Provider, One Unified ViewAlthough outsourcing began as a way to simplify operations, the need to manage multiple providershas become increasingly complex. Typical outsourcing engagements for HR involve specialists –oneprovider for benefits, one for payroll and another one for finance – each utilizing a different systemto perform their function.Not only does overseeing numerous individual providers require extra time that most resource-constrained operations don’t have, but it also makes it nearly impossible to see the big picture. Theonly way to see a unified view of everything that’s going across the organization is to manuallyconsolidate all data from disparate systems and providers with internal information. This process ofcollecting and synthesizing information takes a long time which delays decision-making andintroduces more risk into the results. Furthermore, if the data changed after the consolidation wasbegun, the process would have to start all over again.Cloud-sourcing with Workday Matches Modern Technology with Modern Business NeedsUtilizing Workday’s software, companies gain a unified platform that handles every part of thehuman resource and financial service matrix – payroll, benefits, tax, garnishments, COBRA andexpense checks, as well as accounts receivable and accounts payable. The client company ownsthe software and can configure it to support its own workflow and business processes. All they needis one piece of software and one cloud-sourcing partner. The complexity of managing severalspecialty providers and integrating disparate systems is reduced to a single, unified platform andone partner.It’s important to note that “unified” is not the same as “integrated.” Integration brings disparatesystems together into a common solution. A unified platform means that the entire system was builtas one unit from the beginning. With a unified approach, there is no need for another layer ofmiddle ware to make things work together.By breaking down the silos of traditional outsourcing, and managing all HR operations – internal andexternal -- on a unified platform, HR, Financial and Business management gains real-time insight intothe entire operation – and can do so through any web-enabled device.
  • Improved Security and Streamlined Maintenance Because Workday is delivered on a SaaS model, it is scalable to each customer’s needs: providing the flexibility to ramp up for acquisitions or deconsolidate for divestitures, layoffs or other strategic changes that impact personnel count. The application is hosted in a secure data center protected by multiple layers of security. Company data is surrounded by internal barriers intended to reinforce security and privacy. Because Workday operates in a multi-tenant environment, system upgrades happen simultaneously, not by individual client, so all companies are always operating on the most current version of the software. Even in a hosted environment, where an outsourcer manages the hardware and software for client companies, upgrades are completed one customer at a time, often resulting in long waits and high costs. With Workday’s SaaS model, every client is using the same version of the software, on the same code line. When it’s time for a patch or change, everyone’s software is upgraded at the same time. This process eliminates lengthy downtimes, improves productivity and reduces cost. Cloud-Sourcing – the Model for Today It’s a simple fact: challenges that businesses experience with outsourcing today will never be fixed by sticking with this same outsourcing methodology. The old model is outdated. Companies now require more agility and want more control of their information – without having to invest in their own data center to get it. Through Workday, delivered in a cloud-sourcing model, OneSource Virtual brings our clients the security, transparency and agility they just can’t get from traditional outsourcing. Instead of relying on multiple vendors using disparate platforms for their HR and Finance management, all they need is one unified platform delivered in a SaaS model and an experience partner to support their success. More control…Fewer migration headaches…Consolidated partners and platforms to manage…The era of cloud-sourcing is upon us – and companies of all sizes will soon start reaping the benefits.About OneSource VirtualOneSource Virtual is an exclusiveWorkday partner supporting enter-prises with a game-changing conver-gence of technology and servicesthat was once out of reach.OneSource Virtual is an established,strategic partner dedicated todelivering dynamic solutions toimprove our clients’ business throughSaaS-based, future-proof technologyand efficient processes. Growing andglobal companies and businessleaders partner with OneSource tobest manage, analyze and grow theirbusiness’ value. Visit us atwww.onesourcevirtual.com. ONESOURCE VIRTUAL CONFIDENTIAL